Shares Drop For Local Shopping Mall Companies With News of Amazon in Israel
November 28, 2017 | Shares dropped for Israel’s three largest shopping mall companies after news hit that Amazon planned to open a shipping center for the Israeli market, according to a report in Calcalist. On Sunday, Azrieli Group reported a 4.4 percent drop, while Melisron Ltd. went down 6.1 percent, and BIG Shopping Centers went down 4.8 percent. According to the report, investors are pessimistic about the incoming distribution center because it is a threat to the local industry, but retail executive have mixed feelings. BIG Shopping Centers CEO Eitan Ben-Zeev says any advantage that Amazon may have from local shipping and distribution will be offset by increased taxes from authorities on company sales. Still, online retailers have tax exemptions including the advantage that shipments less than $75 will not have a value-added tax (VAT) of 17 percent. Also, custom taxes are not required for orders of less than $500. It is unclear whether Amazon will face these tax exemptions.